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Joint Statement by Canada and the United States on Section 232 Duties on Steel and Aluminum

After extensive discussions on trade in steel and aluminum covered by the
action taken pursuant to Section 232 of the Trade Expansion Act of 1962 (19
U.S.C. §1862), the United States and Canada have reached an understanding as
follows:

1. The United States and Canada agree to eliminate, no later than two days
from the issuance of this statement:

a. All tariffs the United States imposed under Section 232 on imports of
aluminum and steel products from Canada; and

b. All tariffs Canada imposed in retaliation for the Section 232 action
taken by the United States (identified in Customs Notice 18-08 Surtaxes Imposed on Certain
Products Originating in the United States, issued by the Canada
Border Services Agency on June 29, 2018 and revised on July 11, 2018).

2. he United States and Canada agree to terminate all pending litigation
between them in the World Trade Organization regarding the Section 232 action.

3. The United States and Canada will implement effective measures to:

a. Prevent the importation of aluminum and steel that is unfairly subsidized
and/or sold at dumped prices; and

b. Prevent the transshipment of aluminum and steel made outside of Canada or
the United States to the other country. Canada and the United States will
consult together on these measures.

4. The United States and Canada will establish an agreed-upon process for
monitoring aluminum and steel trade between them. In monitoring for surges,
either country may treat products made with steel that is melted and poured in
North America separately from products that are not.

5. In the event that imports of aluminum or steel products surge
meaningfully beyond historic volumes of trade over a period of time, with
consideration of market share, the importing country may request consultations
with the exporting country. After such consultations, the importing party may
impose duties of 25 percent for steel and 10 percent for aluminum in respect to
the individual product(s) where the surge took place (on the basis of the
individual product categories set forth in the attached chart). If the
importing party takes such action, the exporting country agrees to retaliate
only in the affected sector (i.e., aluminum and aluminum-containing products or
steel).